Burch v. Americus Grocery Co.

53 S.E. 1008, 125 Ga. 153, 1906 Ga. LEXIS 81
CourtSupreme Court of Georgia
DecidedMarch 28, 1906
StatusPublished
Cited by33 cases

This text of 53 S.E. 1008 (Burch v. Americus Grocery Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Burch v. Americus Grocery Co., 53 S.E. 1008, 125 Ga. 153, 1906 Ga. LEXIS 81 (Ga. 1906).

Opinion

Evans, J.

The Americus Grocery Company sued.J- B. Burch for a balance alleged to be due on open account. The only item in dispute was one of May 8, 1903, for a certain quantity of tobacco. The defendant contended that this item was purchased by his clerk, Mike Burch, after he had left his emplojunent, and that he neither authorized nor ratified the purchase nor received the tobacco. On the other hand, the plaintiff insisted that Mike Burch was the general agent of the defendant in the management of his store, and as such, on .previous occasions, had ordered goods of plaintiff on defendant’s' account, and that the plaintiff, without notice that Mike Burch was no longer employed by the defendant, took the order in the defendant’s name and shipped the goods to the defendant, as was usual in the past transactions. On the trial it appeared that the defendant operated a sawmill and in connection therewith conducted a store or commissary. The commissary was in the charge of Mike Burch, who purchased all the merchandise therein sold and managed the business. On former occasions the plaintiff had sold merchandise to the defendant upon the order of his agent, Mike Burch. When the merchandise, to recover the price of which the present action was brought, was ordered of the plaintiff by Mike Burch, he was not in the employment of the defendant, and had not been for two months past. Neither the plaintiff company nor its “drummer” was aware at the time of receiving the order that Mike Burch was no longer in the service of the defendant. The plaintiff’s salesman called at the commissary of the defendant and asked for Mike Burch, as he had alwaj^s done, and was informed that Mike Burch was about three miles awajr, superintending the putting down of a sawmill. ■ There he found him and took the order for the merchandise. It was shipped to the defendant, and the bill of lading was mailed to him. The defendant testified, that the goods were never received by him, but were taken possession of by Mike Burch without his knowledge, and that he never received the bill of lading for the goods. Upon these facts the jury returned a verdict in favor of the plaintiff for the value of the goods, which verdict the trial judge refused to set aside on motion for a new trial.

[155]*1551. In the management of the business of the commissary, the-agent, Mike Burch, had general powers. Belatively t6 this business,, he was the general agent of the defendant in the purchase of merchandise. “Whenever a general agency has been established for any purpose, all persons who have dealt with such agent, or who-have known of the agency and are apt to deal with him, have a right to presume that such authority will continue until it is shown to have been' terminated in one way or another; and they also have a right to anticipate that if the principal revokes such authority, they will be given due notice thereof. It is a general' rule of law,, therefore, upon which there seems to be no conflict of authorities,, that all acts of a general agent within the scope of his authority, as respects third persons, will be binding on the principal, even though done after revocation, unless notice of such revocation has been given to those persons who have had dealings with and who are apt to have other dealings with the agent upon the strength of his former authority.” 1 Clark & Skyles on Agency, § 173(b). This rule was stated and applied in Thompson v. Douglass, 64 Ga. 57. The obligation resting upon the principal of giving notice of the revocation of the authority conferred upon his agent has been analogized to the duty which the law imposes upon the members of a partnership to give due notice of its dissolution to creditors and the public at large. Claflin v. Lenheim, 66 N. Y. 301; 1 Parsons on Contracts (9th ed.), 72, and cit. Where there is no attempt at all to comply with this duty, a retiring partner is to be held liable for debts of the partnership, created after he ceased to be a member thereof, unless he shows that notice of his retirement had been brought home to the persons who subsequently became its creditors. Ewing v. Trippe, 73 Ga. 776; Pyron v. Ruohs, 120 Ga. 1064, and cit. Actual notice alone will affect creditors of the firm. Askew v. Silman, 95 Ga. 678; Camp v. Southern Banking Co., 97 Ga. 582. And like notice must be shown before one who has revoked the authority conferred upon his general agent will be at liberty, relatively to persons who have dealt with such agent upon the faith of his authority as recognized by his principal in the past, to repudiate a contract made in behalf of the principal by the agent after his authority has been revoked. Braswell v. Ins. Co., 75 N. C. 8; 1 Parsons on Contracts (9th ed.), 71. The term “actual notice” is intended to be understood in its strictly legal, technical sense, and ' [156]*156is not to be confounded with actual knowledge, which, as was pointed out in Clarke v. Ingram, 107 Ga. 570, is by no means a synonymous or interchangeable term. “Notice is actual when one either has knowledge of a fact or is conscious of having the means of knowledge, although he may not use them;” it may be either “ express notice,” or simply “implied notice” — notice communicated by direct and positive information from persons cognizant of the fact, or notice such as “arises when the party to be charged is shown to have had knowledge of such facts and circumstances as would lead him, by the exercise of due diligence, to a knowledge of the principal fact.” Id. 571. In the present case no express notice was shown, and the controlling issue was whether or not the plaintiff had “implied notice” that there had been a revocation of the agency, within the meaning of the Civil Code, §3933, which declares that “Notice sufficient to excite attention and put a party on inquiry is notice of everything to which it is afterwards found such inquiry might have led. Ignorance of a fact, due to negligence, is equivalent to knowledge in fixing the rights of parties.” The only circumstance upon which the defendant could rely as suggesting the necessity of making inquiry whether the agency had been terminated was that the order for the goods was given to the plaintiff’s salesman three miles from the defendant’s store, where the agent had been employed. The defendant was engaged in the sawmill business, and his “commissary” was run in connection with that business, as an adjunct to it, and not as a wholly independent enterprise. When the order for the goods - was taken, Mike Burch, who still assumed to act as the defendant’s agent, was superintending the erection of a sawmill. That it did not belong to the defendant or was not to be used in connection with his business was not self-apparent, nor was the fact that Mike Burch was not at the time engaged in his customary duties at the commissary calculated to put the plaintiff’s salesman on notice that he had left the service of the defendant. Moreover, the salesman had first driven by the store of the defendant and inquired for Mike Burch, who had theretofore been in charge of it. Instead of being notified that Mike Burch was no longer in the defendant’s employ, the salesman was told where Mike Burch could be found. Under these circumstances it is not strange that the salesman should assume that the employees at the store of the defendant understood that he had called [157]

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Bluebook (online)
53 S.E. 1008, 125 Ga. 153, 1906 Ga. LEXIS 81, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burch-v-americus-grocery-co-ga-1906.